Ellen,age 39 and Single,furnishes More Than 50% of the Support

question 46

Essay

Ellen,age 39 and single,furnishes more than 50% of the support of her parents,who do not live with her;their only source of income are Social Security benefits.Ellen practices as a self-employed interior decorator and has gross income in 2016 of $120,000.Her deductions are as follows: $30,000 business and $8,100 itemized.
a.Can Ellen qualify for head of household filing status? Explain.
b.What is Ellen's taxable income for 2016?

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Definitions:

Servant Leadership

A leadership philosophy focusing on the leader's primary role as serving the needs of the team or organization before their own.

Anecdotal

pertains to information or evidence based on personal accounts, observations, or non-scientific observations, rather than hard data or research.

Empirically Tested

Examined or verified through observation and experiment rather than theory or pure logic.

Quantitative

Pertaining to or measurable by the quantity of something rather than its quality.